Definition of Bonds payable Bonds payable Amounts owed by the company that have been formalized by a legal document called a bond. Related Terms: Accounts payable Money owed to suppliers. Brady bonds bonds issued by emerging countries under a debt reduction plan. Collateral trust bonds A bond...
Bonds Payable are a form of debt financing issued by corporations, governments, and other entities in order to raise capital. As part of the financing arrangement, the issuer of the bonds is obligated to pay periodic interest across the borrowing term and the principal amount on the date of ...
Definition of Discount on Bonds Payable Discount on bonds payable (or bond discount) occurs when a corporation issues bonds and receives less than the bonds’ face or maturity amount. The root cause of the bond discount is the bonds have a stated interest rate which is lower than the market...
Definition of Book Value of Bonds Payable The book value of bonds payable is also known as the carrying value of bonds payable. The book value of bonds payable is the net or combination of the following amounts, all of which are bond-related liability accounts: Face or maturity value of ...
Lesson Twenty Bonds Payable Learning objectives Define the term Bonds Payable and list its categories Explain how issuing bonds at a premium or discount “adjusts the nominal rate to the applicable market rate of interest”. Make Journal Entries. Describe the proper procedures to record the retireme...
Term Bondsmeans those Bonds designated as such and maturing on the date or dates set forth in the Certificate of Award, bearing interest payable on each Interest Payment Date and subject to mandatory sinking fund redemption. Series A Notesis defined in Section 1. ...
A bond payable is one of the liabilities of the business organizations. It shows the amount that the organization has borrowed from its bondholders... See full answer below.The bond payable can be defined as a financial instrument used by a business organization to raise borrowed funds. Organiz...
Serial Bonds means those Bonds designated as such and maturing on the dates set forth in the Certificate of Award, bearing interest payable on each Interest Payment Date and not subject to mandatory sinking fund redemption. Underlying Securities means any securities issuable on conversion, exchange ...
Learn the carrying value of bonds payable and notes payable. Explore how to calculate the carrying value of a bond with journals representing the...
DEBENTURE. A certificate given, in pursuance of law, by the collector of a port of entry, for a certain sum, due by the United States, payable at a time therein mentioned, to an importer for drawback of duties on merchandise imported and exported by him, provided the duties arising on ...